Level 3 Communications has reported that it is being forced to pay recurring fees to the cable operator in order to deliver Netflix Watch Instantly content, as the internet traffic peer is one of Netflixâ€™s delivery partners. The company has also stated that Comcast took a hardline position on the fee, stating that it would either pay the fee or cease its peering with the operator leading to service interruption, which forced it to pay the fee in order to maintain services for Netflix customers.

For its part, Comcast attempts to downplay the situation and clarify its position, stating that the situation is the result of an onging peering dispute and a disagreement on traffic ratios after Level 3 won the delivery contract for Netflix and claims that Level 3 attempted to force Comcast to accept the increased traffic under its free peering agreement instead of paying for the increase.

With the FCC set to introduce its long-awaited framework on net neutrality on the 21st, it remains to be seen how the situation will play itself out as Comcast has filed an ex parte brief with the regulator explaining its position on the matter yesterday.